Looks like Keenum must be a teetotaler...

[patdog]

You're way overestimating the costs and underestimating the revenue. Also, you're ignoring basketball and baseball beer sales. A quick Google shows that the Colts average over $400,000 gross revenues from beer/liquor/wine sales per game with about a 48% margin. I doubt we'd do quite that well, but you can bet we'd make a lot on it.

 

[paindonthurt_]

At $160k at $80 a pop you should profit 25% easily after cogs Labor etc.
$40k times 7 games is $280 profit

Times football, baseball and basketball is $740k profit.

That’s small compared to $100M but it would fund some smaller sports.

Sure, it would be profitable, but it will be a blip on our $100M budget. I doubt it would profit $1 million a year and guess it'd be closer to $500,000.

At a football game with 60,000 attendance at night, how many beers sold? I'd guess 10,000. For argument's sake, let's say 20,000. $8 a beer? $160,000 gross.

You have to hire extra staff that are 21, run background checks, and train them. That is probably 100 extra people; I can't even guess what that would cost. $20,000?

I know that walk-in coolers at a average convenience store will run $100,000. You'd need to have walk-in refrigerated storage, beer-only stations built, concession stands retro-fitted with tap equipment, what else? I'd say that is at least $1 million; w. It could be end up multi-millions.

Insurance will run an extra 1% of gross.

 

[DancingRabbit]

What's the cost of losing 5000 season tickets? It's about attendance.

Not beer profit.

You're probably right about the actual alcohol profit being $500K to $1M.

Make a million and save a million.

I'm fine with us taking a year and putting together the right plan.

 

[Go Budaw]

Economics don't work that way, you can't just add up some imaginary numbers and declare victory. You also have the increased cost of security, the lost sales from people who won't bring their family to a stadium full of drunk ********, fights in the stands, lawsuits from injuries, etc. I still think you are a net positive on revenue but it's not nearly what you are saying.

It boils down to the experience you want to give your fans. This is a hard choice for teams like MSU. For Ole Miss and LSU it's an easy choice because all their fans are drunk ******** already so you might as well cash the check.

The revenue impact is absolutely and without question extremely substantial, and that is the only reason anyone would ever consider doing it (even the “drunk ********” like LSU and OM, as you say).
It’s been broken down in other threads, but the numbers range from $1.5 - $3 million per season depending on a few variables.

Also, all your alleged financial drawbacks are ridiculous. Increased security? Why? There is already security there, and there are already drunk people in the stadium, whether they bought beer in the stadium, drank it in the junction, or snuck it in. There is no need for more security. People that won’t bring their family to a stadium of drunk ******** already aren’t bringing their family (see above). Lawsuits from injuries? Name one time that has ever happened and led to a big payout by an MLB or NFL team, stadium, or vendor.

This is the SEC, as a whole, giving up the ghost and saying “hey, we’ve got a **** ton of people drinking in the stadium no matter what, might as well make a ton of money off of it”. Nothing more, nothing less.

 

[DAWG61]

[h=2]What's the cost of losing 5000 season tickets? It's about attendance.[/h]

Why would we lose 1 season ticket let alone 5,000? You can still sneak in alcohol just like always so the cost per game doesn't increase for those 5,000 people anyways. If anything attendance and more importantly attendance that actually stays for the entire game will increase not decrease.

 

[RutherfordBHayes]

At $160k at $80 a pop you should profit 25% easily after cogs Labor etc.
$40k times 7 games is $280 profit

Times football, baseball and basketball is $740k profit.

That’s small compared to $100M but it would fund some smaller sports.

I think that's about right, but I also think we are being generous on the football sales. I bet football game sales will be closer to $10,000 per game than $20,000. Baseball and basketball will probably lose money because they average 5,000 or so.

My argument wasn't that it would lose money, just that it won't be some economic boon that some on social media make it out out be. It'll definitely make a profit at football, just not a big one.

 

[DancingRabbit]

You misunderstand me. I'm saying alcohol sales will help retain/expand season ticket sales.

 

[HumpDawgy]

View attachment 13150

 

[Dog316]

Nixed alcohol sales at MSU events. Can't understand that for the life of me based on the revenue we need being a bottom dweller in the SEC. We should take advantage of every opportunity that is allowed to bring in revenue.
We are MSU!!!

No disrespect intended, but we are not bottom dweller in the SEC. That narrative is corrosive and outdated.

 

[HD6]

We are when it comes to money.

 

[Dog316]

Heard on Taylor Zarzour's radio show that in every case where the effect of college stadium alcohol sales on alcohol-related problems has been evaluated, incidence of alcohol-related misbehavior has decreased. I remember that UWV (down 40%!) and Oregon (also a big drop) have conducted studies on this within the last couple of years, But I can't remember the others he mentioned. Both studies concluded that people aren't overdoing it as much at pre-game tailgates, because they know they can obtain alcohol in the stadium.

You need to check with some other sources. People who drink too much at the tailgate will not drink less if it is sold in the stadium, they will just continue to drink and be a nuisance to everyone around them who is not inebriated. In every group there is a small percentage who don’t know when to quit, and become rude and disrespectful. I say let Ole Miss and LSU wear wear those hats!

 

[DAWG61]

You need to check with some other sources. People who drink too much at the tailgate will not drink less if it is sold in the stadium, they will just continue to drink and be a nuisance to everyone around them who is not inebriated. In every group there is a small percentage who don’t know when to quit, and become rude and disrespectful. I say let Ole Miss and LSU wear wear those hats!

Rather them drinking beer than hard liquor and so should you.

 

[o_Hot Rock]

That's where you and I disagree

You need to check with some other sources. People who drink too much at the tailgate will not drink less if it is sold in the stadium, they will just continue to drink and be a nuisance to everyone around them who is not inebriated. In every group there is a small percentage who don’t know when to quit, and become rude and disrespectful. I say let Ole Miss and LSU wear wear those hats!

The stats show that places that have started selling alcohol have less alcohol related arrests and fights. The incident rate actually went down by 50% at West Virginia. So, you argument that we will have more binge drinkers in the stands is false. You will have less.

 

[PBRME]

You need to check with some other sources. People who drink too much at the tailgate will not drink less if it is sold in the stadium, they will just continue to drink and be a nuisance to everyone around them who is not inebriated. In every group there is a small percentage who don’t know when to quit, and become rude and disrespectful. I say let Ole Miss and LSU wear wear those hats!

Those same people are sneaking liquor in the game. If you pay enough money you can bring alcohol in the stadium to your locker or skybox. It’s already there. There will be people over drinking whether alcohol is sold or not.

 

[patdog]

It's hard to binge drink in the stands, even if you want to. There's usually a 1 or 2 drink limit per trip, and they won't serve someone who's obviously drunk. So, unless you want to keep going through the line all day, it's going to be hard to get too hammered (obviously a few will manage to get it done). As for binge drinking at the tailgate, selling alcohol will actually curb that a little because you won't have people slamming down several beers in the last half hour before going into the stadium.

 

[patdog]

You have lost your mind if you think it would even be possible to lose money selling beer at basketball or baseball games. It's not sold at virtually every professional sporting event in the country because it's a money loser or even a marginal money maker. It's sold because it's a big money maker. Very big. Your $10,000/game football sales translates to about 1,200 beers. That's not even close to being realistic. Even if you meant 10,000 beers, it's still not even close.

 

[HumpDawgy]

IMO watching drunks get yanked out of stadiums adds value to my entertainment dollar.

 

[RutherfordBHayes]

You have lost your mind if you think it would even be possible to lose money selling beer at basketball or baseball games. It's not sold at virtually every professional sporting event in the country because it's a money loser or even a marginal money maker. It's sold because it's a big money maker. Very big. Your $10,000/game football sales translates to about 1,200 beers. That's not even close to being realistic. Even if you meant 10,000 beers, it's still not even close.

We'll just have to disagree. You'll never sell enough beer to break even at baseball and basketball retro-fitting concessions, adding millions of dollars in coolers and dispensing equipment, buying insurance, and hiring/training all that extra staff. Football will probably make up the difference over time.

But again, my argument was not that it wouldn't be profitable. Just that the profit will be negligible.